Fundstrat’s Tom Lee believes 2019 holds a significant positive turnaround for the cryptocurrency market as a whole despite the prolonged bear market conditions that characterized 2018. The Fundstrat co-founder says an imminent tailwind of positive incremental improvements will drive another bullish rally for cryptocurrency prices.
“Flippening” Market Factors
As part of its 2019 cryptocurrency outlook, Lee says the company expects marked improvements in the cryptocurrency market after a difficult 2018. An excerpt of the report published on Twitter shows a summary of the company’s verdict on the events that shaped 2018 and its forecast for the year to come.
According to the report, the negative variance between major developments and industry expectations led to investor fatigue. This fatigue consequently led to sell-side pressure that ultimately expressed itself in a prolonged bear market.
For Lee, the hype over significant developments surrounding custodial solutions and institutional investments couldn’t trigger any significant price rallies in 2018. Speaking to CNBC on February 8, 2019, Lee identified seven “headwinds” that exerted negative pressure on the market.
In the report, Fundstrat analysts put forward the same argument, noting the emergence of a “flippening” in these market factors. According to the report, there are now far more positive influences than negative ones on the cryptocurrency market as a whole.
Some of the positive improvements that form part of the coming tailwind for the cryptocurrency market include weakening dollar, institutional-grade custodial solutions, and improved fiat-to-crypto inflows.
In January 2019, for instance, Fidelity announced that its custody platform would go live in March. Bakkt, the Intercontinental Exchange (ICE)-owned physical Bitcoin futures trading platform, also launches sometime in Q1 2019.